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Wednesday, April 10, 2013

You know it's bad when even a former EU commissioner calls for a eurozone break-up

Former Dutch Internal Market Commissioner Frits Bolkesten is best known for having authored the liberalising EU Services Directive (in its original form before some member states and the EP watered it down significantly) but from today he has another claim to fame - becoming the first former European Commissioner to publicly back a breakup of the euro. Here is what he said to Dutch paper Algemeen Dagblad:

"The Netherlands has to exit the euro as quickly as possible... The monetary union has totally failed. The euro turned out to be a sleeping pill which made Europe doze off instead of thinking about our competitiveness... Let’s stop with the euro and instead strengthen the Single Market... We don't need the euro for that."

As an alternative, Bolkestein - who, it should be said, has long been critical of the current direction of the EU - proposed a currency union formed of economically strong countries, a so-called "Triple A euro". Bolkestein also had some tough words for the European Parliament, arguing that:

"It is not representative anymore for Dutch and European citizens. It lives out a federal fantasy which is no longer sustainable."

Well I never; amazing, even an ex EU commissioner can think for himself!I recall a very sensible lady saying a long time ago that 'you can't buck the market' and some of us have been standing on street corners proclaiming this news for many years, whilst being called luddites or fruitcakes by our 'dear leaders'. The air is thick with the sound of chickens coming home to roost.

"As an alternative, Bolkestein - who, it should be said, has long been critical of the current direction of the EU - proposed a currency union formed of economically strong countries, a so-called "Triple A euro"."

Why?

What is this obsession with disallowing nation states from issuing their own national currencies?

Bolkestein proposed a "parallel currency" for the 3xA countries, next to the euro. He sees this as a possible "plan B", (Mr. Dragi: "no plan B") and expects that this may become necessary within 5 years. He's a very rightwing policitian, not a prophet, but his ideas usually deserve discussion. (link for Dutch audience: http://pauwenwitteman.vara.nl/Fragment-detail.1548.0.html?&tx_ttnews%5Btt_news%5D=30226&tx_ttnews%5BbackPid%5D=116&cHash=4478892e5dedce78ec67428737116c02)

Denis - You've got to remember the clause in his pension contract. He can only speak - -"Nil nisi bonum" (correct??) about the EU.

As for promoting an alternative Euro-type for the filthy rich, he has worked in Brussels too long and has to meddle. That's one of the weaknesses/horrors of the EU. It has to find jobs for all these nationals who have been rewarded by being made a Commissioner. They have nothing to do so invent something. "Mischief makes work for idle hands to do".

For all the alleged advantages of being a member of the customs union it must be emphasised there is still not freedom to trade in services.

Whereas trade in manufactures and food were introduced almost immediately upon our joining the EEC, the activities in which the UK is world leader are still not fully liberalised. Even leaving out the intense nationalism of certain member states and their governments (think France), a number of financial and professional services are still restricted.